Answer :
Final answer:
The dollar price of a treasury coupon security with a par value of 100,000 and a quoted price of 103.284 is calculated as 100,000 * (103.284 / 100), which equals 103,284.00. So, the correct option is D) 103,284.00.
Explanation:
To calculate the dollar price of a treasury coupon security with a quoted price, you multiply the par value by the quoted price, expressed as a percentage. So, with a par value of 100,000 and a quoted price of 103.284, you would perform the following calculation:
Dollar price = Par value × (Quoted price / 100)
Dollar price = 100,000 × (103.284 / 100)
Dollar price = 100,000 × 1.03284
Dollar price = 103,284.00
The correct answer to the student's question is 103,284.00, which represents the total dollar price of the security.
